GuruFocus Updates 5 August 2010 Featured No Comment

By Saj Karsan. Western Digital Corp (WDC) trades at a P/E of just 4.5, despite having cash of $2.7 billion against debt of just $400 million. Subtracting the net cash position from the company’s market cap (as we have previously done with other companies) gives the company a P/E of under 3! It is rare to find a large cap trading at such a low P/E, particularly in a growth industry (the company sells hard drives, which more and more of the devices we use rely on). But before jumping in, investors should be aware of a couple of caveats. Read more » »